Bitcoin value hits a brand new excessive because it rises above $ 35,000

In this photo illustration, visual representations of the digital cryptocurrency Bitcoin are arranged on January 4, 2021 in Katwijk, the Netherlands.

Yuriko Nakao | Getty Images

Bitcoin rose to an all-time high on Wednesday as the cryptocurrency continued to trade wildly.

Bitcoin price soared to over $ 35,000 from around 2:11 a.m. EST on Wednesday, according to Coin Metrics. The price spike came just days after falling more than 10% to $ 29,316. This followed a jump of more than 300% in 2020 to levels above $ 29,000.

On Monday, JPMorgan released a note with a bold long-term price target for Bitcoin claiming the cryptocurrency could hit as much as $ 146,000 as it competes with gold as an “alternative” currency. The precious metal also saw significant gains in 2020, with spot gold increasing around 25% over the year.

Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital, told CNBC’s Capital Connection on Wednesday that his company was “fairly optimistic” about Bitcoin’s store of value and saw it “replacing” gold.

Scaramucci, a former White House communications director, added that Congress’s democratic control over cryptocurrencies was “great” due to the expectation of “enormous” money pressures under a party-controlled federal government.

However, JPMorgan strategists said that Bitcoin would need to become significantly less volatile before it can compete with gold in terms of market value. It is known that the price of the cryptocurrency goes through wild swings.

The call from the U.S. investment giant was noteworthy in light of CEO Jamie Dimon’s earlier comments on Bitcoin. Dimon once called the cryptocurrency a “scam”.

PwC’s global cryto leader Henri Arslanian told CNBC’s “Street Signs Asia” on Monday that the recent surge in Bitcoin record levels was partly due to the entry of larger institutional investors.

– CNBC’s Ryan Browne, Saheli Roy Choudhury and Yen Nee Lee contributed to this report.

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